Let’s picture this
- Lowe the pay by 30% to LOXY
- Wait till Aug , Lower the lay by 30% L-APC
- Lay-off based on the reduced salary.
- As long as VH is still the CEO, there will be no reorg.
11 replies (most recent on top)
That sounds like an excellent question to have a lawyer look into.
COC is for 3 years. Salary cannot be "materially changed". Perhaps there is a precedent for 5% being "material", hence the 4.9% cut. So this might be ok as Oxy maintain. The bonus element of COC is based on best of the previous 3 years. What Oxy seems to be forgetting is that the FORM 8-K Merger Agreement reviewed and approved by the SEC states no legacy APC base salary reduction and no short or long term incentives reductions for the first year. That will not expire until August 2020. See P 44, Section 6.3 (j). The big question is, what are the consequences of Oxy ignoring this part of the merger agreement? Can this breach really be separated from COC triggering events? Is choosing to ignore terms in an SEC approved merger agreement an SEC issue?
Bankruptcy will wipe out equity. Shares will be worth zero. Employees under the COC will become creditors and will get in line for any left over cash.
If goes to Bankruptcy,’COC does not help anyone anymore
Anadarko management tried to run away from OXY. I think they knew what a cluster f OXY was. In the end OXY made such a ridiculous offer they couldn’t say no any longer. We could now be working for stable company (Chevron) instead of this OXY induced train wreck.
Wrong. COC runs out in August 2022. Mofo
COC runs out in August mofo
Can anyone confirm its highest salary of the last three years? I recall the highest bonus verbiage.
So in other words LAPC has the lucky fate of being laid off or let go last. Enjoy the next 3 years.
Covered for 3 years from termination for no reason
The COC calculates any lay-off for L-APC based on their highest salary, and bonus, for the last three years.